Calculators Blog

A derivative can be defined as a security whose price depends on or derives from one or more underlying assets. Very simply, is a contract between two or more parties. The value of a derivative is determined by fluctuations in the underlying asset. These assets include stocks, bonds, currencies, commodities, stock indices and interest rates.

Mutual funds are recently introduced in India and larger portion of the investors in the market still need to get acquainted with the concept. Therefore it becomes the prime responsibility of the financial services providing companies to market the product side by side of selling. Most of us are not aware of what Mutual Funds actually are, therefore, we define Mutual Funds as a collective investment scheme, which takes money from different investors and invests them in stocks, bonds and other commodities. Mutual Funds require a manager who trades the investments; this manager is known as Funds Manager.

FMP is the amount of time that the plans are actually investment programs will focus on the debt. In this program, portfolio investments recorded as debt securities with a maturity of the FMP has the same maturity. The main objective of FMP is to provide income while preserving capital for investments in debt securities mentioned above.